London open: Stocks rally on upbeat Chinese data

The FTSE 100 opened higher after better-than-expected Chinese data.

China’s gross domestic product (GDP) rose 7% year-on-year in the second quarter, above forecasts for a 6.8% increase.

“The second quarter’s stronger-than-consensus GDP growth partly reflects an unsustainable surge in financial sector activity that will prove short-lived,” said Julian Evans-Pritchard, China economist at Capital Economics.

“Even so, there are plenty of positive signs on broader economic momentum in today’s data too.”

Chinese industrial production output climbed 6.8% over the year, ahead of analysts' expectations for a rise of 6%. Fixed asset investment grew by 11.4% during the first half of the year, compared with consensus of 11.2%.

China retail sales jumped 10.6% year-on-year in June, beating projections for a 10.2% gain.

Closer to home, UK employment data will be released at 0930 BST.

In the Eurozone, Greece remains the main focus as Athens' parliament votes on a package of reforms necessary to obtain the 'bridge financing' from creditors that it needs to avoid a collapse of the country's banking system and a Grexit.

"This really is a hugely important but difficult vote that is effectively a choice between three more years of painful austerity or a potentially brutal and messy Greek exit from the Eurozone," Craig Erlam, senior market analyst at Oanda said in a research note e-mailed to clients.

Stateside, US Federal Reserve Chair Janet Yellen's half-yearly testimony before the US House of Representatives' Financial Services committee, something roughly akin to the Treasury Select Committee, may shed further light on her thinking regarding when interest rates on the other side of the Pond should start heading higher.

On the corporate front, Anglo American topped the FTSE 100 after Credit Suisse upgraded the stock to ‘outperform’ from ‘neutral’.

Burberry slumped after it said a decline in Asia Pacific and further deceleration in Hong Kong hurt sales in the three months to 30 June.

International Consolidated Airlines Group dropped as the European Commission approved its offer for Aer Lingus, after it agreed to make some concessions to assuage concerns about competition.

Market Movers
techMARK 3,171.08 -0.51%
FTSE 100 6,732.92 -0.31%
FTSE 250 17,582.44 -0.34%

FTSE 100 - Risers
Mondi (MNDI) 1,500.00p +1.15%
Anglo American (AAL) 879.00p +1.09%
Wolseley (WOS) 4,295.00p +0.82%
Hikma Pharmaceuticals (HIK) 2,099.00p +0.82%
Direct Line Insurance Group (DLG) 353.00p +0.77%
Fresnillo (FRES) 681.50p +0.74%
Legal & General Group (LGEN) 269.90p +0.67%
Travis Perkins (TPK) 2,175.00p +0.51%
RSA Insurance Group (RSA) 419.50p +0.41%
United Utilities Group (UU.) 887.00p +0.34%

FTSE 100 - Fallers
Burberry Group (BRBY) 1,573.00p -2.90%
Unilever (ULVR) 2,865.00p -1.21%
Weir Group (WEIR) 1,577.00p -1.19%
GKN (GKN) 315.00p -1.10%
Royal Mail (RMG) 513.50p -1.06%
GlaxoSmithKline (GSK) 1,378.00p -1.04%
Sainsbury (J) (SBRY) 265.10p -0.97%
Vodafone Group (VOD) 235.90p -0.84%
Babcock International Group (BAB) 1,095.00p -0.82%
Associated British Foods (ABF) 3,111.00p -0.70%

FTSE 250 - Risers
Kaz Minerals (KAZ) 200.50p +3.35%
Ophir Energy (OPHR) 114.30p +2.51%
Intermediate Capital Group (ICP) 575.00p +2.13%
Just Eat (JE.) 425.80p +1.87%
Lonmin (LMI) 78.70p +1.75%
Workspace Group (WKP) 940.00p +1.68%
Vedanta Resources (VED) 459.60p +1.66%
Renishaw (RSW) 2,182.00p +1.58%
Moneysupermarket.com Group (MONY) 293.00p +1.00%
Man Group (EMG) 152.50p +0.99%

FTSE 250 - Fallers
Entertainment One Limited (ETO) 326.20p -10.11%
Micro Focus International (MCRO) 1,336.00p -6.83%
Wetherspoon (J.D.) (JDW) 732.00p -5.06%
Premier Farnell (PFL) 166.10p -3.82%
Fidelity China Special Situations (FCSS) 137.50p -3.71%
PZ Cussons (PZC) 354.70p -3.27%
Diploma (DPLM) 795.00p -3.05%
Tullow Oil (TLW) 287.40p -2.97%
Rotork (ROR) 210.20p -2.87%
FirstGroup (FGP) 115.40p -2.62%

FTSE TechMARK - Risers
Dialight (DIA) 530.00p +0.95%
Innovation Group (TIG) 31.75p +0.79%
Oxford Instruments (OXIG) 883.50p +0.45%
Skyepharma (SKP) 276.00p +0.18%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 197.91 +0.17%

FTSE TechMARK - Fallers
UCW Limited (UCW) A$0.01 -7.69%
KCOM Group (KCOM) 95.50p -1.29%
SDL (SDL) 390.25p -1.20%
Torotrak (TRK) 6.80p -1.16%
Oxford Biomedica (OXB) 9.00p -0.77%
Consort Medical (CSRT) 883.50p -0.67%
CML Microsystems (CML) 366.00p -0.41%
Anite (AIE) 125.75p -0.40%
E2V Technologies (E2V) 233.50p -0.32%
Spirent Communications (SPT) 91.25p -0.27%